Ubisoft and Tencent create new subsidiary just for Assassin’s Creed, Rainbow Six & Far Cry

Ubisoft announced the creation of a new subsidiary focused on its top three IPs, securing a significant investment from Chinese company Tencent, which acquired a 25% minority stake for €1.16bn. The subsidiary, valued at €4bn by Ubisoft, will now oversee the Assassin’s Creed, Rainbow Six, and Far Cry franchises, with teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia operating under this new business unit. This includes control over existing games in the franchises’ back catalogue and any future developments.

This strategic move comes in response to reports of Ubisoft seeking alternative ways to raise funds and attract investment without relinquishing ownership of the company itself. Ubisoft CEO Yves Guillemot expressed optimism about the subsidiary’s potential, emphasizing the importance of building strong game ecosystems, growing high-performing brands, and creating new IPs with cutting-edge technologies.

Guillemot stated, “With the creation of a dedicated subsidiary and Tencent’s investment, we are unlocking the value of our assets, strengthening our financial position, and fostering long-term growth for these franchises.” The subsidiary will operate autonomously, focusing on transforming the three major brands into unique ecosystems.

The investment deal includes stipulations to ensure Tencent’s commitment for at least five years, preventing any sudden withdrawal that could impact Ubisoft or the subsidiary. Ubisoft is required to maintain a majority stake in the subsidiary for a minimum of two years to safeguard against external pressures.

Despite challenges in recent years, including setbacks with certain game releases and workforce reductions, Ubisoft remains optimistic about the success of titles like Assassin’s Creed Shadows and the upcoming revamp of Rainbow Six Siege.

Source: Ubisoft